Wipro to acquire a cybersecurity consulting firm Edgile for $230 million

Wipro Limited on Monday, December 20, 2021, announced that it has signed an agreement to acquire Austin, Texas headquartered Edgile, a transformational cybersecurity consulting provider that focuses on risk and compliance, information and cloud security, and digital identity.

Wipro will acquire the company in a cash deal for a purchase consideration of $230 million. The transaction is expected to be completed before March 31, 2022, subject to regulatory approvals and customary closing conditions.

Wipro said that the acquisition of Edgile will strengthen Wipro's leadership in Strategic Cybersecurity services. Edgile's experienced cybersecurity and risk management professionals will allow Wipro to further enhance its cybersecurity and risk consulting capabilities for the benefit of its customers. In addition, the company's "strategy-first" approach and "Quick Start" solutions will allow the combined entity to deliver enhanced value in strategic cybersecurity services.

It said, "Together, Wipro and Edgile will develop Wipro CyberTransform, an integrated suite that will help enterprises enhance boardroom governance of cybersecurity risk, invest in robust cyber strategies, and reap the value of practical security in action. In collaboration with an extensive roster of alliance partners from Wipro and Edgile, Wipro CyberTransform™ will enable organizations to accelerate their digital transformation and operate in virtual, digital supply chains — all in a highly secure manner."

Tony Buffomante, Senior Vice President & Global Head – Cybersecurity & Risk Services, Wipro Limited, said, "Adding Edgile's strategic consulting capabilities and launching Wipro CyberTransform are significant milestones on our journey to becoming the trusted partner to security leaders and boardroom stakeholders. I see the team blending very well with Wipro's CyberSecurists to deliver transformational cybersecurity on a global scale."

Don Elledge, Chief Executive Officer, Edgile, said, "We are immensely thrilled to join Wipro, a company we admire for its values and deep technology capabilities. Our collective full spectrum of cybersecurity risk consulting and security management capabilities will help our global customers to continue to securely embrace their digital transformation journey and sustain their ongoing risk management priorities."

Wipro, earlier this year, strengthened its cybersecurity business by acquiring Ampion, a leading provider of cybersecurity services in Australia, and the cybersecurity practise at Capco, a leading consultancy in the BFSI sector in Europe and the US. Additionally, through its Wipro Ventures arm, the company continues to invest in innovative cybersecurity start-ups, demonstrating the firm's strong commitment towards providing industry-leading cybersecurity solutions across sectors and regions.

Abry Partners, a minority private equity investor in Edgile, will fully exit its investment in Edgile as a result of this transaction. Piper Sandler acted as financial advisor to Edgile and Stone Key Partners LLC acted as financial advisor to Wipro for the transaction.

Founded in 2001 and headquartered in Austin, USA, Edgile is an information security consulting firm providing professional services, primarily focused on delivering cybersecurity and risk management consulting services to corporations. Edgile is privately held and has an onsite workforce of 182 employees.

Last three years' reported revenues (year-ended 31 December): $ 33.7 Mn (CY18), $43.2 Mn (CY19), $44.1 Mn (CY20).